This after ratings agency S&P Global raised the country’s foreign currency long term sovereign rating, to BB from BB-. S&P cited stronger growth prospects, an improving fiscal outlook and reduced contingent liabilities following better performance at power utility Eskom.

S&P says National Treasury has managed to arrest rising debt and restore fiscal credibility to put the country back a growth path. Last week’s Mid Term Budget Policy Statement showed debt at gross domestic product stabilising at 77.9% this financial year and the budget deficit narrowing to 4.7% of gross domestic product in 2025/26, from 4.8% in the May budget. S&P says in a statement it expects SA’s gross domestic product growth to pick up to 1.1% in 2025 after a subdued 0-point- five percent in 2024. SA is now two notches below investment grade on the foreign currency rating.

–SABC–